Is it an Xbox 360 Lite that will appear at E3?

An interesting rumour has surfaced suggesting that Microsoft will unveil an Xbox Lite device at this year's E3.

The rumours come courtesy of noted Xbox leak MS Nerd. He claims that the device is powered by an ARM-based processor and will bear similarities to the Apple TV device.

It is possible that this device is the source of the rumours of a disc-drive-less next-gen Xbox that have been proliferating for a while now.

MS Nerd added, "At some point after [the Xbox Lite], we'll see a Xbox Next, a true successor to the 360. Details about it are very hazy, except that, like the 360, it will do games for core-audiences and the same media apps as the other device, also with Kinect."